Government is considering allowing Chinese companies to dilute their stakes in Indian ventures on a case-by-case basis, potentially opening the doors for expansion in India. The decision comes amid tightened scrutiny on FDI from China since 2020, with security concerns being a top priority.
While decisions will continue to be made on a "case-by-case" basis with a focus on security concerns, sources suggest that this move could enable companies like Xiaomi and other prominent Chinese firms to expand their presence in India.
Megha City Gas Distribution (MCGDPL), a wholly-owned subsidiary, has decided to consolidate operations and reached out to state-run Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Indraprastha Gas, among other players. It ventured into city gas distribution under the brand name Megha Gas in 2015 and continued to operate as MEIL till FY22.
Grapevine: Megha Engineering to sell city gas unit; Hyundai Motor picks IPO bankers vccircle.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from vccircle.com Daily Mail and Mail on Sunday newspapers.
According to reports, Megha Engineering and Infrastructures Limited (MEIL), a significant participant in the Indian infrastructure market with headquarters in Hyderabad, intends to sell Megha City Gas Distribution Private Limited (MCGDPL), which handles city gas distribution.